Pearse Doherty (Donegal, Sinn Fein)
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92. To ask the Minister for Finance if he will amend the insurance compensation fund legislation to allow the claimants at a company (details supplied) that are likely to be compensated soon; and if he will make a statement on the matter. [30254/17]

Paschal Donohoe (Dublin Central, Fine Gael)
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It is my understanding, after seeking clarification, that the Deputy wishes to know if there is an intention to amend the Insurance Compensation Framework legislation (Insurance Act, 1964) to allow the claimants of Setanta to be compensated for 100% of the amounts due to them.

At the outset you should note that my Department has been advised by the Liquidator that as of 20 June 2017, the number of open claims was 1,578. 

The Office of the Accountant of the Courts of Justice and the State Claims Agency are currently working with the Liquidator to progress the making of payments subject to the limits of 65% or €825,000 whichever is the lessor. There are currently 324 claims ready for settlement and I understand that these have been validated by the State Claims Agency.  The process for bringing these claims to the High Court for approval has commenced but a date has yet to be agreed.

In relation to the 35% gap, it is expected that a proportion of the balance of claims will be met from the proceeds of the distribution of Setanta’s assets on completion of the liquidation process.  However, it is not possible to say definitively at this stage what proportion of the claims this will amount to, but current indications are that this is unlikely to be sufficient to cover the full amount.

In this regard, in 2014, a preliminary assessment was carried out by Towers Watson who indicated that the Liquidator would not be in a position to meet more than 30% of claims out of the assets of the liquidation.  The Liquidator has informed the Department that as the Supreme Court has now made its judgment, it will be necessary for a new report to be commissioned to provide updated figures.

Finally, the Deputy should note that the forthcoming legislation based on the recommendations of the Review of the Framework for Motor Insurance Compensation in Ireland will amend the relevant Insurance Acts to ensure 100% of third party motor claims will be covered in any future motor insurance insolvencies. However, it  does not provide for 100% compensation for Setanta policyholders.